Tech Mahindra may recall onsite staff as Slow down in It becomes more evident

Tech Mahindra may call back almost half of its staff working onsite for its lead clients, British Telecom in the UK and AT&T in the US. The company has 2,000 of its total strength of around 24,000 professionals working onsite.

British Telecom is believed to have asked Tech Mahindra to take around 800 people back to India, while AT&T is said to have asked the provider to take back around 300 people.

‘‘These two are the bread and butter clients of Tech Mahindra. They want to move certain mature practices and processes offshore to lower costs, considering that the telecom industry has been experiencing sluggish growth across the US and Europe. There is considerable shrinkage in landline, cellular, gateways, voice and broadband spaces. Verizon, AT&T and Sprint have posted flat growth in terms of revenues and subscriber base,'' said sources.

Tech Mahindra COO C P Gurnani said, ‘‘Some onsite staff are coming back. But it's part of readjustment and redeployment. People come back to take up new projects once projects they work onsite are over. It happens on a rotational basis across industry.''

BT accounts for 60% of Tech Mahindra's business. Around 70% of Tech Mahindra's revenue comes from Europe, and 20% from the US. Telecom accounts for 95% of the company's business. It has 8,000 and 3,000 people dedicated for BT and AT&T respectively.